As the Grand Marais Recreation Park’s season begins to wind down, the Park Board is already beginning to plan for next year. One idea being discussed is raising rates on “high value” sites that are located closest to the lake with good views. No action was taken on the matter, and Park Manager Dave Tersteeg was asked to explore options for the board and bring them back at the board’s next meeting.
The Grand Marais Recreation Park board discussed a variety of items at its October 6 meeting, but possible rate hikes to premium sites was tops on its list.
Grand Marais City Councilor David Mills, who is the city’s liaison to the park board, told Parks Manager Dave Tersteeg that with all of the improvements the city was planning, it was important for the park to make as much money as it could. “The city council in general feels pretty strongly about getting the best rates it can for prime real estate,” Mills said.
But Tersteeg argued that the park board should think twice before it raises the fees too high, citing long time loyalty by summer renters who also volunteer throughout the town and have become part of the community.
“Some of them might get angry and leave,” said Tersteeg.
Mills responded, “We’re looking at a 12 percent levy. Using this revenue could be a tool to help balance the budget.”
The sites discussed were the ones closest to the lake with the best views. As longtime renters leave those sites, they are now put into nightly rental rotation where they generate far more income. Some on the park board would like to offer all of those sites as nightly rental and offer people who now occupy those spots alternate locations for their trailers or RVs.
“Personally I think if you do that their feelings will be hurt,” Tersteeg said.
“Who else gets to live on Lake Superior with a front row seat and pays no taxes?” said Park Board Member Sally Berg. “These are prime sites and they are getting a big discount on those sites.”
Kaye Tavernier has spent summers working at the park and now serves on the park board. With that perspective, Tavernier said that if there are rate hikes the campers have to know that it was coming straight from the park board and not from the employees. Concerning longtime renters on the locations closest to the lake, if their spots are going to go up by as much as 30 percent, “The park board needs to write them a letter explaining to these people our rationale for the increase. This has to come from us and the letter has to be signed by all of the park board members,” she said.
Currently sites in the prime spots pay $3,600 for the season. A 30 percent increase would bring that up to about $5,000. Tersteeg said he asked one of the long-time guests what he thought about this, noting that the person told him he was on a fixed income and couldn’t do it.
While no decision was made, the board authorized Tersteeg to come up with some alternative to raising rates at the park and bring them back to the next board meeting.
September numbers up
Once again the campground had a banner month, said Tersteeg.
“September revenue for the campground and marina finished at $175,472, up $29,000 versus September of 2014,” Tersteeg said. “Several factors have led to our success—strategic rate adjustments, elimination of the weekly discount on the ‘front row’ sites, increased occupancy, especially in May, June and September, and successful Internet marketing.”
Tersteeg said, “Internet traffic to our website is up 35 percent versus 2014. We do strategic ad buys on several sites that generate referrals for 28 percent of visitors to our page; the bulk of our users (55 percent) find us through an organic search on the key words ‘Grand Marais campground.’ Our next step is to create a mobile, responsive version.”
Tersteeg also said the park was transferring to a “real-time, map-based online reservation booking engine through the hospitality group ResNexus.”
“Our goal is to have everything up and running in time for the busy January booking season. We start to take reservations January 4 at 8 a.m.”
The new reservation system will cost $250 per month, much less than the inefficient system now used that costs $600 to $700, said Tersteeg.
Gunflint Hills Golf Course
Although the revenue from Gunflint Hills golf course is only up $329 from last year, September revenue is up 33 percent, said Gunflint Hills Golf Course Manager Mike Kunshier.
Golfers are continuing to take advantage of the nice weather, and play is also up this October, said Kunshier, so the yearend total will rise from the current take of $119,653.
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